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We are upgrading Alkermes Plc (ALKS - Free Report) to Outperform following the upwardly revised adjusted earnings guidance provided by the company for fiscal 2013. The guidance was boosted following the successful completion of the refinancing of Alkermes' previously outstanding senior secured bank debt.

Alkermes has been performing well since the purchase of Elan's EDT unit last year, thanks to the expanded portfolio. Moreover, the US approval of type II diabetes drug, Bydureon, is a major positive for Alkermes as the drug offers significant commercial potential. We are also pleased by the pipeline progress at Alkermes.

We believe that there is significant scope for stock price appreciation from current levels. Our price target of $24.00 is based on 6.1x our fiscal 2013 revenue estimate.

We are downgrading Intel Corporation (INTC - Free Report) shares from Neutral to Underperform following the company's lowered expectations for the next quarter. We think that weakness in mature markets, economic headwinds in some emerging markets and pressure from tablets and other competitors are taking a toll on the company.

We think current trends overshadow Intel’s $0.04 positive surprise versus the Zacks Consensus in the second quarter that was driven by strength in server and software businesses and supported by a moderate PC business. However, we remain positive about Intel's dominance in the high-margin server segment and promise of success in the mobile segment, although competition from ARM-based devices continues to intensify.

We believe that Ultrabooks and Win-8 are wild cards this holiday season and could skew results either way. We are also lowering our target price to $20.00, which is 9.4X our earnings expectations for 2012.

Leading apparel retail chain Gap Inc. (GPS - Free Report) in the process of achieving superior long-term growth has created a new business structure that places the global operations of its brands under one executive. With this strategy of uniting its operations, the company expects to speed up its ability to swiftly respond to the evolving consumer needs, while expanding its world-wide presence and boosting shareholder value.

Gap announced that with the commencement of fiscal 2013, its North American, international, online, outlet and franchise divisions will be spearheaded by a single global executive for each of its brands – Gap, Banana Republic and Old Navy. Additionally, the company aims at bolstering its online presence as well as making technological advancements with the creation of a new Innovation and Digital Strategy team.

To facilitate this transition, the company made a few alterations in the existing management positions, which will be effective November 5 onwards. The company has promoted the president of Gap’s international division, Steve Sunnucks, to the position of the Global President, overlooking operations from New York. Assisting Sunnucks from San Francisco, Mark Breitbard, the senior product leader for the brand in the U.S. and Canada, will now be appointed as the President of Gap North America.

Art Peck, the current president of Gap North America, has been elevated to the position of President of the new innovation, digital strategy and new brands division.

At Banana Republic, Jack Calhoun, will assume his new role as the Global President and will focus on all channels and markets globally. He currently serves as the division’s president. At Old Navy, the company made an early start with this strategy, appointing Stefan Larsson as the Global President in April. He has assumed the new role starting this month.

Additionally, management indicated that it sees China operations as a major long term opportunity for its brands. Hence, the company has placed the China division under the direct supervision of Chairman and CEO, Glenn Murphy.

Nancy Green, presently working as the product leader for Old Navy, has been given the new role of supporting China operations. In her new role, she is empowered to channel the product assortment and merchandise for the China market.

Further, management stated that the current president of its online division, Toby Lenk, will be leaving the company following the transition in February 2013.

These changes are the result of the management shifts made in 2011 that targeted uniting the specialty and outlet divisions and also setting up the Gap Global Creative Center in New York.

Over the years, Gap’s five brands and more than 3,200 stores have spanned across over 40 countries globally, expanding significantly compared to operating in only eight countries in 2006. The company mainly competes with national and local department stores and discount stores, such as American Eagle Outfitters Inc. (AEO - Free Report) and The TJX Companies Inc. (TJX - Free Report) .

Gap currently maintains a Zacks #1 Rank, which translates into a short-term Strong Buy rating. Our long-term recommendation on the stock remains Outperform.

Every day, the analysts at Zacks Equity Research select two stocks that are likely to outperform (Bull) or underperform (Bear) the markets over the next 3-6 months.

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At the center of everything we do is a strong commitment to independent research and sharing its profitable discoveries with investors. This dedication to giving investors a trading advantage led to the creation of our proven Zacks Rank stock-rating system. Since 1988 it has more than doubled the S&P 500 with an average gain of +25% per year. These returns cover a period from 1988-2016. Zacks Rank stock-rating system returns are computed monthly based on the beginning of the month and end of the month Zacks Rank stock prices plus any dividends received during that particular month. A simple, equally-weighted average return of all Zacks Rank stocks is calculated to determine the monthly return. The monthly returns are then compounded to arrive at the annual return. Only Zacks Rank stocks included in Zacks hypothetical portfolios at the beginning of each month are included in the return calculations. Zack Ranks stocks can, and often do, change throughout the month. Certain Zacks Rank stocks for which no month-end price was available, pricing information was not collected, or for certain other reasons have been excluded from these return calculations.

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